Adults with ADHD: Preparing for Next Year's Taxes
Let's face it, doing your taxes isn't any fun. It is a boring task and for adults with ADHD, boring tasks usually end up being put off, sometimes indefinitely. Even the thought of receiving a refund may not be enough motivation to get you through the mundane chore of gathering paperwork and completing all the forms.
Throughout this month, I have posted several different articles to help you with your taxes:
Now, when taxes, refunds and money management are high priorities in your life, it is time to look forward to next year and begin implementing some changes to make sure you don't pay any more taxes than you need to.
Below are five ways to start planning for next year's taxes:
Job Search Expenses
With the unemployment at a high rate, many of you may spend time over the next year looking for work. According to the Wall Street Journal, some job-search expenses can be tax deductible. For example, you may be able to deduct expenses for someone to prepare your resume or traveling to look for work. The article in the WSJ explains, " You can't deduct job-search costs if you're looking for a job for the first time -- or if there was a "substantial break" between the time you left your old job and began looking for a new one." Make sure you track your expenses and keep receipts of mileage journals.
If you don't yet have a retirement plan set up, this may be a good time to do so. Contributions to qualified retirement plans are not subject to federal income taxes and may not be subject to state income taxes as well. If your employer matches contributions, that is even better as your money will grow, tax-deferred, even quicker. If you are already contributing to a retirement fund, decide whether you can increase your contribution rate for the upcoming year.
The money placed into one of these accounts are pre-tax and when spent on qualified medical expenses, you won't ever pay taxes on the money.
Giving items away to qualified organizations, such as Goodwill or Salvation Army are considered charitable contributions When you go on a organizing spree and start throwing away those things you no longer want, haul them off to one of these stores and ask for a receipt for your items. The IRS provides guidelines for reasonable amounts to deduct for many common household items.
Adjust Tax Payments in Your Paycheck
As you complete your taxes this year, pay attention to the end result. If you a re receiving a large refund, you may be paying too much in taxes each payday. Ask your employer human resources department for a copy of your tax worksheet. You may want to adjust your dependents so that you receive more money in your paycheck throughout the year. The opposite is also true, if you owe money, you may want to have more money taken out of your paycheck so you aren't saddled with a large tax bill next April.
Publication 526: Charitable Contributions, 2009, Internal Revenue Service
Publication 590: Individual Retirement Arrangements, 2009, Internal Revenue Service
Publication 4703: Retirement Contributions Credit, 2009, Internal Revenue Service